Economic Growth Of Latin America

Although Australia remains geographically isolated from the world, international trade still remains a main factor that allows Australia’s economy to prosper. Australia’s long history of trade has created tight links and connections with other nations. Being a member of many worldwide organisations, Australia has produced many free trade agreements with countries around the world. However, recently Australia has seen a change in the composition and direction of its trade and has developed a strong trade link with the Asia-Pacific Region.

Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.

Exchange rates play a pivotal role in the relationships between individual economies and the global economy. Almost all financial flows are processed through the exchange rate, as a result the movements and fluctuations of the exchange have a significant impact on international competitiveness, trade flows, investment decisions and many other factors within the economy. Due to the increasing globalisation of the world economy, trade and financial flows are becoming more accessible

A country packed with history, culture and tradition; the third biggest state in Latin America which has the largest population (at the beginning of the 21st century, population exceeded 100 million) – MEXICO.

Australia’s Position in the global exporting market is only 22nd, which is far from its leading top trade partners that fit in the Top 5. Also, Australia’s global ranking in the global importing market is 18th, which is under India whose economic status is much lower than Australia. A second disadvantage that Trading brings to Australia is the competition between local small businesses and Trans National Corporations (TNC). Local businesses are closing down and being taken over because of the increase in the entrance of TNCs in Australia. Large Fast food chain Corporations like McDonalds, put local fish and chips shops under pressure. Another disadvantage with Australia being part of International trading is that most of the products that Australia export are agricultural goods that has high tariffs, making it costly for Australia to be able to export.

There has been a lot of conversation surrounding the use of driverless trucks in mining. It was in 2015 that two Pilbara mines started using them to move iron ore. The workers control the trucks from 1200 kilometres away and the trucks can worth 24 hours a day without breaks. This has saved companies up to 500 hours every year.

For the Latin American/Caribbean region, one human induced environmental problem would be the severity of deforestation due to mining practices. According to Lisa Naughton’s lecture, the price of gold has skyrocketed due to the stock market crash, leading to a higher demand of gold and driving roughly 7,000 miners into the forest, making this a global resource demand. Gold mining has a significant history South America. According to page 281 of the textbook, Spain demanded that their colonies provide gold and silver for the Spanish crown during the 1500s, with the crown itself demanding 20% of all mining profits. Also, outsiders are no strangers to destroying South America’s natural resources for their own benefit. As stated on page 281,

What are the major economic problems that have plagued Latin America in the 20th century?

This system of capitalism was originally brought to the Third World countries through a preliminary process called the mercantilism period. This system was made possible by the occurrence of renaissance in Europe that encouraged the birth of modernity. European countries were promoting divisions to gain trade benefits from Asia to Africa. Generally they did so by applying monopoly practices over their colonies. This phase then continued to colonialism. In an effort to change the economic logic of this colonial government organized different approaches. Some by totally changing and some by transplanting local economic structures and or modified them. In Latin America and the Caribbean the separation of peasants from forcible land ownership then sent slaves as workers who contributed surpluses from cotton and tobacco farms. In some parts of Asia it is done by utilizing existing early systems through local high-ranking officials such as those in Java.

In an open and deregulated economic environment, exchange rates can play an important role in macroeconomic management for stability and growth. The increasing role of exchange rates since the early 1970s has indeed been a break from the Bretton Woods tradition of the 1950s and 1960s that assigned a limited role for exchange rates in economic affairs. However, the banking and currency crises of the 1990s that afflicted many developing countries in different regions have provided a somber lesson that in a global economic setting, exchange rate policy, and monetary and financial policy more broadly, cannot be

However, the relative economic success of some regions such as Antioquia (northwest side of Colombia) and Cundinamarca, (center of the country) and the emergence of entrepreneurs and bankers allowed a political change.

La tierra mas hermosa. The most beautiful land. Latin America and the Caribbean maintain the humble beauty of many indigenous regions. The rugged mountains of Bolivia are scattered across graded lands. The Quechua people can be seen wearing richly decorated ponchos as they plant seeds for forming. Weathered volcanic lavas are stretched over the lands of Guatemala, and the heavily wooded forest trees can also be seen in the eastern slopes of the Andes. The azure blue oceans of Havana sparkle as the golden sun illuminates the sky. These humble lands have always been here; streams of people have flowed through these lands for centuries. It is only the globalización that is relatively new, and along with that comes the life one lives in these lands--pobreza y viviendo en el infierno [poverty and living in hell]. The impact of globalization in Latin America has caused a ripple in the lives of many individuals living in Latin America and the Caribbean. Although globalization is not a new concept, the process of globalization has drastically expanded and involved into social, political, and economic changes that weakens the sovereignty and power that helps create policies and reform government institutions.

The information in the table highlights the impact of Asian foreign markets and the growing. China and Japan have been indifferently on the top position and has seen to takeover Unites States in the years stated (dfat.gov.au., 2016). There is no percentage, so the drawback lies in accurate comparison between countries amongst the distribution of export markets.

Exchange rate represents the external value of a currency. Changes in exchange rates may affect the relative position of a country in the international trade. Politicians and economists concern about exchange rate variability for lots of reasons, among which that the exchange rate variability discourages trade comes first. However, a large empirical literature on this issue does not confirm a significant effect of exchange rate on the volume of trade [1]. Instead other variables such as employment should be much more important from a practical point of view, for it is closely related to people’s livelihood.

A fixed exchange rate regime will offer an economy greater stability in international prices and therefore encourage trade. Additionally, for developing countries a fixed rate will assist in promoting institutional discipline as the country will adopt restrictive monetary and fiscal policies that foster an anti-inflationary environment. A significant weakness of a fixed rate is that it is subject to destabilizing speculative attacks which could lead to financial meltdowns and devastating economic contractions. A floating exchange rate regime allows central banks to combat macroeconomic factors such as unemployment, inflation, and interest rates without having to worry about the effect on exchange rates. However, developing countries whose economies depend on trade will be reluctant to allow their exchange rates to fluctuate freely.